PepsiCo(PEP) - 2020 Q2 - Earnings Call Presentation

Non-GAAP Measures and Their Use - The company uses non-GAAP financial measures (organic revenue growth, core results, adjusted core results) for internal operating and strategic decisions[2] - Non-GAAP measures provide additional information to facilitate comparison of historical operating results and trends[2] - Non-GAAP information is supplemental and not a substitute for U S GAAP financial information[4] - The company adjusts reported results for items like mark-to-market gains/losses, restructuring charges, COVID-19 impacts, and others[3] Revenue Performance - PepsiCo's reported net revenue decreased by 3% but organic revenue remained flat for the 12 weeks ended June 13, 2020[11] - Frito-Lay North America (FLNA) reported net revenue increased by 7% and organic revenue increased by 6% for the 12 weeks ended June 13, 2020[11] - Quaker Foods North America reported net revenue and organic revenue increased by 23% for the 12 weeks ended June 13, 2020[11] - PepsiCo Beverages North America reported net revenue decreased by 7% and organic revenue decreased by 7% for the 12 weeks ended June 13, 2020[11] - For the 24 weeks ended June 13, 2020, PepsiCo's reported net revenue increased by 2% and organic revenue increased by 3%[11] Operating Margin Performance - PepsiCo's reported operating margin performance decreased by (205) bps, while core operating margin performance decreased by (195) bps for the 12 weeks ended June 13, 2020[11] - FLNA's reported operating margin performance decreased by (124) bps, while adjusted core operating margin performance increased by 185 bps for the 12 weeks ended June 13, 2020[11] Regional Performance - In Brazil, reported net revenue decreased by 20%, but organic revenue increased by 7% for the 12 weeks ended June 13, 2020[15] - In Mexico, reported net revenue decreased by 16%, but organic revenue increased by 3% for the 12 weeks ended June 13, 2020[15] - In China, reported net revenue increased by 24% and organic revenue increased by 30% for the 12 weeks ended June 13, 2020[15]